Cryptocurrency experts have cautioned the United States that its global financial supremacy will be in danger if it still refuses to embrace innovation concerning Blockchain technology.
During the last 50 years, the US was a financial superpower, especially because of its native currency, the US Dollar, that emerged as the global reserve currency. That might be in danger due to China’s growing interest in Blockchain technology and the ever-increasing popularity of the world’s largest cryptocurrency Bitcoin, experts opine.
The entire scenario is now under jeopardy owing to two reasons. “The first is Bitcoin and the second is China’s digital currency (now being called DCEP). Bitcoin is fairly self-explanatory — it is a digital currency that is fully transparent and not controlled by anyone. Pretty powerful for the billions of people around the world that don’t live in the United States,” said Anthony Pompliano, Co-founder of Morgan Creek Digital.
Pompliano, a major Bitcoin proponent, expressed his sentiment while discussing how China is slowly inching towards global dominance with the help of Blockchain, and the direct repercussions it could have on the United States as a global superpower.
Of late, the interest in Blockchain technology has substantially increased in China after the recent speech of Chinese President Xi in which he referred to Blockchain as a vital resource for the future of the Chinese economy.
While comparing the United States and China‘s reaction to Blockchain and Bitcoin in general, Pompliano said the US has always appeared largely negative. Several Congressmen and Senators in the US have been widely against the issuance of digital currencies, with the SEC managing to slow down the development of various crypto-startups across the country. Besides, the President of the United States, Donald Trump, had also opined that he was not a big fan of Bitcoin, claiming that digital assets are not America’s top priority at the moment.
In contrast, China has been largely active and according to reports, the country has been studying the virtual asset space for the last 5 years. In fact, the imminent launch of a Chinese digital currency DCEP comes years after a lot of constructive planning was put into it.
For the United States to have substantial control over the global financial landscape, Pompliano believes that the nation must embrace innovation concerning the Blockchain industry. China is taking all the necessary steps at the moment to keep itself in contention for future supremacy, while the United States is stifling any sort of encouragement.
“The future will be automated, global, and largely decentralized. There will be a power shift from corporations and governments back into the hands of individuals. The first few countries who empower this shift will have the greatest chance of thriving in the new world,” he added.